neil: mitt romney was right. here this week. welcome, everybody. 128 million americans receive benefits in 2011. that is more than the entire population of japan. our government is getting bigger and faster. our government is up. following this trajectory, it means half of americans

receiving goodies, the folks of who put this study together means two out of every five americans receive some form of assistance from at least one federal government program. many of those same folks begs the obvious question. and why are they getting them and why are we paying for them? there are a lot fewer of us paying in than those taking out.

>> and turns other payments to people like we know, maybe even us, and it is behind. it would be 70% of the entire federal government outlay. outlays to people and what we have done in this report is went through the data using u.s. census data. this is from the march supplement of 2011. and we have identified programs that send money to people. so if you get food stamps and social security, you are not counted twice. only once. it is 120 million people, and that is an enormous population by any standard, as he pointed out. it's on a trajectory to grow substantially. neil: more people say this is

what is going on. the simple fact is what we are doling out right now, and i just worry that after reading your study, but there doesn't seem to be politicians to cut spending. and there doesn't seem them to find a way to pay for it. and that means we are taxing a lot higher. >> here's the worst in part what it means that it's harder to

create jobs and incomes. it's harder to get people off of government programs. it is in a sense easier because you don't have the private sector jobs to do that. we are in a very difficult messier. it is really one out of every three americans. that just turning around and saying you are doing government programs. well, you see how difficult it becomes. neil: it's an amazing study. thank you very much. >> you are welcome. neil: for the guy who wanted to make him president, mitt romney, john stemberg says it should not be too late for us to address government warnings laid out by mitt romney. what do you think of this?

>> you are basically bringing me in $2.2 trillion a year, you are spending 3.8 trillion a year, and you are in the $16 trillion in hop. the math doesn't work. and you say the people at the top -- you saw their taxes go up. [talking over each other] [talking over each other] neil: you know, you have all of that entity at $50,000 a year.

>> you know, i just think that what america is looking for, and i believe that people say the president and his economic program was the more popular one. i disagree with that. people voted on issues like contraception and immigration and those issues when the president and his reelection. neil:

>> i think the president misrepresented and. they dropped that resolve this year. but i didn't know that they were saying take a pass on spending. >> simpson-bowles is bipartisan. [talking over each other] >> i've heard some democratic economist on here today talking about the fact that the president has a trillion dollars in cuts in reference these medicare cuts. well, the fact of the matter is that these are not real structural changes. what you are doing is telling a

doctor that would've would be less than what we paid you for. neil: i believe it should be a dollar more than i'm making. tom, good points having been made, great to have you again be one forget another run of the wallet. how about the world saying off with their heads. how about the world economic forum.

worse than tsunamis or melting glaciers. i think these guys are saying don't look now. but this french dude who isn't even french who sounds french so we will make him french, is rearing his despicable head. >> this crisis was resolved in north america. this is america. we don't let frequent heartburn

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this easy-to-understand guide will answer some of your questions, and help you find the aarp medicare supplement plan that's right for you. neil: the american drought. dare i say that this is worse than food shortages and the rich are getting richer almost anything you can think of, including global warming,

greenhouse gases, and now, snooki. okay, okay, that last one i made up. but these guys are not giving up. they are targeting the rich. >> a genocide going on in syria, maybe the debt crisis is hitting all of the western government. >> i think it's unproductive to be attacking successful and wealthy people. like mitt romney who donates millions of dollars to charity to help the less fortunate.

in employed thousands of people throughout his lifetime. what's more productive is maybe if we rein in spending and regulations and get our country back to a more productive business atmosphere so people can be employed. neil: we are talking about the rich and whether they are paying. you dodge the criticism. and you divide the taxpaying public into thinking, hey, wait a minute, these clueless analysts are not the problem. the rich are. the max well, that's exactly right. this study, it was based on crony capitalism and the

business government relationship, but we have seen going on with crony capitalism aspect of this is bailouts have driven up our national debt. my generation is going to be left on the hook for. it is not seen as an economic atmosphere, especially my generation who is facing massive unemployment. neil: places like greece and italy and france -- that is what is prompting them to raise tax rates. maybe packets back to the drought issue here. but they don't see that or they

don't admit that. >> exactly. well, social security alone is about to devour our revenue. neil: that's when it hit our generation. neil: thank you very much. the texas chainsaw massacre movie is the number one movie in the theaters right now. it is the third installment. droid dna augmentation initiated.

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neil: it's official. he believed that congress has its head up its colonoscopy. more popular are root canals and traffic jams. >> we have an opportunity now. because if nothing happens, with the house and the senate, if they don't pass legislation and the president signs it, we have an automatic $1.2 trillion of spending restraint starting in two months.

>> the sequestration cuts they put off for two months remap as long as it was wrapped up with the tax issue, it is very important. democrats need to talk about the specifics of how the sequester is organized. my guess is the democrats in the senate will be unable to pass any budget cut of the same side as the sequester. so what we will date is the sequester. neil: at around the same time, the debt ceiling, that is where they think the democrats fail

and the republicans are in a corner. so the republicans can risk of grabbing the feed defeat from the jaws of what would appear to be this problem. >> as you remember, it was midway through 2011. 1.5 years years ago. the president of the united states said he was going to drive us off the edge of the world. neil: to be playing it fair, he has been playing it more cleverly than the republicans. >> you are comparing the fiscal cliff where the president had all the power.

>> i am comparing 2011 and the way he played an extended all the bush rates. perhaps he feels cocky. i feel like noster dominus. >> now that his job is secure, he is raising taxes. neil: democrats seem to say that we are to put you put you in another boxer and if it were up we are going with a. >> two things the sequester, which isn't on $1.2 trillion cut in the budget is not

-- [talking over each other] [talking over each other] >> remember that timothy geithner said that the debt ceiling was january 31. just trying to mesh that with the fiscal cliff. and the republicans said no, separate issue. it is also a separate issue from the sequester. and what the republicans have said and what they told the president to a year and a half ago. the president lost, but likins won on the question of if we wanted to raise the debt ceiling because obama is overspending. you have to cut spending dollar for dollar by the same amount. speaker boehner has reiterated that that is enough. so has mitch mcconnell. the president of united states can stand up and say that i lied to you and i said i wanted to reduce running. i like you, and i said i was

going to offer government reforms. but if he does that, i think he isn't is in a very weak position and democrats are killing themselves if they think that the american people want to continue overspending. and the debt that obama is running out. we can give the president a month of debt ceiling increase or six months or year. then you have the continuing resolutions. because the democrats have not passed the budget or written a budget in more than three years, we have a continued resolution. beyond your points are very good. thank you. neil: they say no deed goes unpunished. did you hear about aig? it just keeps on suing.

at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

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♪ visit floodsmart.gov/pretend to learn your risk. neil: after saying thank you, how about saying ssrew you? that is what aig is doing. the company appears to be going for blood. they say it's not personal, it's just business. >> it is actually not that weird. >> most of the shares of aig.

neil: they might not have been a company to do that. >> he is an activist who is suing. he is going for the company and saying if you don't at least show us, they might get the money and the fiduciary can help the shareholders gets more money out of the federal government. neil: what about the other part of this? are you having trouble understanding it. >> no, i'm not. [talking over each other] neil: the company benefited from a huge bailout. many argue the way it was handled. but the company wouldn't be around otherwise the.

neil: i disagree. >> but that is why -- i mean, i agree with that -- but i mean -- [talking over each other] [talking over each other] >> i'm just giving you an example b-1 where he think this is going? >> i think they have to consider it. i think they have to consider everything. they don't want to incur the wrath, not just of neil cavuto. [laughter] neil: can they separately do a deal to get him off his back? >> the whole thing is crazy. back up to 2008. it was a mass in 2008. what he liked the bailouts or not, actually broke the story about the government doing the

bailout at aig. it was an emergency bailout in the moments after lehman brothers collapsed in 2007. aig ensure the bonds are held by all major banks. neil: was not one of the arguments, charlie? to use that as a slush fund? did they ever find that as true? >> at the time it looked like -- listen to me, the question is did goldman sachs need to bailout, and i think yes. >> i mean, there are two premises. people like you have said that morgan stanley, citigroup, bank of america, merrill lynch as well, people like me who say, well, i want that to happen.

but if that didn't did happen, it would have been a global armageddon. neil: we don't know that. >> we never know. but i think that president bush made a good call. it is pretty bipartisan at the time the one there was a lot of collateral damage at the time. you have bank of america, an amenity that was left out of the whole doctoring financial law. and the government -- the world is upside down. >> you know, it is hard to make sense of this. this is what happens. neil: you and your lemmings were screwing the world to they said they were going to bailout the banks. why is i? if they didn't do that on the

whole system would wind down the toilet. neil: that's a negative theory and we could never know that. >> but who is going to admit that they're wrong? wilkerson? neil: there will be other banks that will be sued doing transactions and this is all the result of this. >> you know, we are going to barter and have a barter system. >> that's what you say when you're losing. [laughter] neil: okay, great reporting. charlie gasparino, thank you so much. he's a great reporter and a good friend. breaking news, a bad dream

coming up next.

neil: dreamland is looking more like a nightmare today. today, a fuel leak and 8787 jumbo jet. forcing the pilot to cancel its takeoff. same airport, same airline. united airlines just discovering a wiring problem in the same area of the japan airlines fire. we have an aviation expert. could there be even more smoke where there's fire? >> should folks be worried? >> well, i think that boeing should be worried. the airlines are building their

system around this airplane. this is become more of a bad dream than anything else. the worry is will your airplane be at the date getting fixed. neil: i'm not worried about getting fixed as much as a dime. [laughter] >> when we add them up, we see a lot of them. all the airlines have ordered record numbers. they will eventually be put online. should i be worried? >> i think there should be something. the fuel leak in boston, as an example -- [talking over each other] >> they would be losing fuel. it could be very serious if you

are overblown or somewhere and you have nowhere to land. boeing does have issues than just these problems here. will those airplanes be there for the customer on time? they have some problems to deal it. neil: you know, i always wonder. we had a guest talking about the 737. they were largely minor in the beginning. most incidents were relatively minor, as you say. but what is going on -- this type of series of problems compared to other airlines. >> the 747 had major problems a long time ago. it was major stuff and they work through it. this is an entirely new

production chain and technology. i think it is being watched a lot closer and as a result, every engineer is working on this problem. >> this could be a dumb or amateur question to questions asked. but when the streamliner's are out there, would it be with me when i book a commercial flight? when we think of that? >> well, it might. >> it might be a good idea. i think the reality is you have an 18-inch of the seat and that's all you have on any airplane. in terms of comfort level, it's not that much different. it's not going to harm you one way or the other. neil: do you think they maybe should not have named it the

streamliner, maybe they should have named it okay liner? [laughter] neil: okay, michael, you're the best. you know what you're talking about. meanwhile, a trillion dollar coin. then using abraham lincoln. the final installment in this story.

neil: this just in. the apocalypse is on. the third and final piece. the latest part of vets. you already know the other two. the going to magically wipe away our debt crisis.

abraham lincoln and the 14th amendment. the state of illinois, pushing to give drivers licenses to illegals. in other words, documents to the undocumented. the world is toast. rome is down. okay, tucker carlson joins us next. what you have to say? >> well, you make it sound so amusing. i'm almost not afraid of you. >> i like to laugh in the face of death. [laughter] >> that's fantastic. you know, these are all signs of the coming collapse. there's no question about it. the third one is the least defensible, however, there is no immigration crisis that needs

this in the form of illegal aliens. this is just pure candor. there is no other reason to do this other than to win votes for the democratic party and it's pretty over the top. neil: sadly enough, i just thought it was upside down. we are giving documents to people that shouldn't have them because they are undocumented. and we have somehow created ways to avoid the debt crisis by not addressing the underlying spending behind this debt crisis. where is this world going? >> exactly, welcome back to washington. we have nancy pelosi telling us that federal spending and national debt -- i don't think those two things are related. that's what she said. we know the math. we know how it determines how big of a debt crisis we will have. but hold on tight, it's going to be a ride.

neil: where is all this going? >> well, i'm not sure. [talking over each other] [talking over each other] neil: we never said it would be the end of the world. >> i do think these politicians -- they actually liked the attention than they get. most people don't follow the day-to-day operations, and it's like they want the media attention and now it's two months away and they think that they are going to kick it out to more months. the promises and the reality of it have come to an end. that does not fix itself. you are going to annoy large parts of the population. especiallespeciall y trying not to just the fact have obligations and the elderly

population is getting older and it is going to be a perpetual bizarre story like this if we try to get around this problem. >> you have written it very eloquently. i wonder whether republicans lost the key opportunity to make a statement and take a stand. i'm wondering what happens now if they regroup into sequestration spending cuts. when they finally show their resolve? >> you know, the public does not support the concrete steps necessary to get our fiscal house in order. which includes cutting medicare. the only way that the congress will take action is by convincing the public that it's necessary. >> making the case in public, that is the predicate to all legislative action.

you cannot vote in tax legislation. nor can you convince that your program is right. they're not even trying to. neil: so when americans think less of congress than they do colonoscopies -- that's not good. that's generally not favorable. [laughter] >> anyone who is a conservative in washington dc is facing an uphill battle. many don't believe that spending is the problem. neil: what worries me more in that context is the addressing of the health care spending. we think of that? >> we are bankrupt and we are back to implement some of the bigger ticket items in the obamacare legislation. if we look back to when medicare passed, they were telling us when medicare and social security will solve it. the real cost had been over

time. we are about to make this the same mistake with obamacare. neil: obviously, with tucker's point, it is there on the part of the public. what do you think? >> the appetite is not there. they are trying to solve it with a high tax rate. we don't like it, but they have 50% tax rate. neil: are you using europe as an example? >> our population doesn't want to cut medicare will pay for it. neil: but they don't want to cut it. you will have to pay for it. >> we don't know what to do either.

neil: if that is the case, we'll be looking at down the road? >> there's not an appetite to pay taxes, there's an appetite for other people who were in mythical upper tax brackets to pay for it. so there is an appetite for that. i think the only solution is a less progressive tax code under which the average person feels the sting of the program he is benefiting from. you will never want smaller government if you're not paying for it. why would you? >> talking to people in the millennial generation, programs like social security and medicare, we know that they won't be there by the time that we retire. that is money going down the drain and we won't see it again. the promise that this is a program that we pay into and you get something out of his frankly not true for people anywhere were working right now. neil: well, that worries me in a

way. the argument seems to be that people are cynical about the prospects they're going to get with this stuff. so why not address the kind of things we can do now to make sure they can remap. >> they don't believe they will get them. they don't think there will be a defense department in 20 years. we don't have money for any of these programs. >> the biggest problems are the easiest ones. they don't even require anything other than changing numbers. >> so you cut programs by 1%. >> there are all kinds of adjustments. the public doesn't want to see -- the people think that they are going up.

neil: tucker, some people say that the best thing that ever happened. it woke a lot of people up to the fact that your taxes are going to and you have mistaken us more of anything. what you say about that? >> i think that's probably right. i think most people are woefully undereducated on this problem. many think that he has already paid for his medicare. well, actually, the average person takes out what they take in. >> welcome an account about the whole thing going. neil: the bottom line is that they have to redo the plan. i want to thank you all. when we come back, be grateful it's done. it could've been worse. it could have been a "new york times" columnist who turned dowo the job he was never offered

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neil: here is all you know, why he is an inherited jerk. he has no clear. he could never be treasury secretary because kodak it would actually reduce my input to. paul krugman no way offered use the job and as you noted you would never be confirmed not because you are not smart because you are in arrogant ass a. of your so arrogant but even in washington they find the revolting a arrogant ass because you ass describes herself let me quote from st. paul quote back to be the op-ed columnist at the times is a big deal. immensely grateful